A. If merchandise inventory is being valued at cost and the price level is consistently rising (inflation), which method of costing will yield the largest gross profit and higher current ratio?

a. Average cost

b. FIDO

c. FIFO

d. LIFO

e. Specific identification

B. General Motors presents the following data for the year ended December 31, 2017 (millions)

Receivables, net (allowance = $212M), beginning of year Receivables, net (allowance = $278M), end of year		$ 8,700 8,164
Net Sales		133,449
Cost of Goods Sold		114,869

The days sales in receivables using 365 days is:

a. 22.3

b. 15.8

c. 26.8

d. 23.1

e. 22.7